Which of the Following Statements Is Concerned with Equity Rather

question 66

Multiple Choice

Which of the following statements is concerned with equity rather than efficiency?

• A) Almost all taxes create some amount of deadweight loss.
• B) Excise taxes tend to raise prices for consumers and reduce sales for firms.
• C) Tax rates on the wealthy are too low and should be raised.
• D) The incidence of a tax does not depend on who actually pays it.
• E) Taxes generate revenues that governments spend on services.

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Definitions:

Roller Skates

Shoes or boots with four wheels arranged in a rectangular pattern, allowing the wearer to glide along surfaces for recreation or sport.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery.

Labor

The human effort, both physical and mental, used to produce goods and services.

Isocost Line

A chart displaying every possible input mix that can be acquired for an identical expense.